Why do high earning individuals get a refund from SARS?



Tshepo says:
8 July 2015 at 23:05

Why do high earning individuals get a refund from SARS?

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TaxTim TaxTim says:
9 July 2015 at 3:28

That is not true, refunds are only when you have paid too much tax during the year. It all depends on individual circumstances. Whoever told you that isn't understanding how taxes work correctly!

Tshepo says:
9 July 2015 at 8:04

But, then high earning individuals are usually taxed at high tax bracket during the year with regard to their PAYE, so that correlates with your response.

TaxTim TaxTim says:
10 July 2015 at 9:26

Tax is paid on a marginal and progressive system, the more you earn the more you pay. If you make tax deductible contributions to various funds or donations etc then you this will reduce your overall income which obviously reduces your overall taxes owing and in some cases will result in a refund.

However this is not always the case and this person is still paying more tax than someone who earns less and contributes to the same funds. The refund is only money back that has been paid over already. The basic principle is still the more you earn the more you pay.



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